Total investment in Spanish commercial real estate more than doubled in the third quarter of 2014 compared with the year-earlier period, PropertyEU's Southern Europe Investment Briefing has heard.
Total investment in Spanish commercial real estate more than doubled in the third quarter of 2014 compared with the year-earlier period, PropertyEU's Southern Europe Investment Briefing has heard.
The most recent quarter saw €6.6 bn invested in Spanish property, a 138% rise from the €2.8 bn recorded for the same quarter last year, according to Patricio Palomar, head of research for CBRE Spain.
While the number of deals was up just 37% (from 172 to 236), average ticket prices have reached €33 mln, up from €18 mln a year before.
‘This has been a year of big deals,’ said Palomar. 'In Madrid, we have had five office deals of more than €100 mln, which is a lot for that market.’
The rise in volumes continues a trend from the previous year. From Q3 2012 to Q3 2013, volumes more than doubled, from €1.2 mln to €2.8 mln. But those two years of growth may have seen the best value snapped up, Palomar observed.
‘It’s not the time to continue thinking in double-digit yields in Spain, it's very difficult to find these kind of deals. Investors with sufficient investment capacity and willingness to assume some risk can expect double-digit returns, but you have to assume some big risks.’